Living in a home seriously damaged by inclement weather can be challenging or outright unsafe. Especially once repairs begin, homeowners may need to make arrangements to stay elsewhere, such as a long-term stay hotel or a short-term apartment that does not require a year-long lease.
Depending on the scope of the damage and the repairs required, people may need to live elsewhere for weeks or even months while professionals restore their home to inhabitable condition. Homeowners may find that they struggle to secure the financial support they need when paying for alternate housing and other costs related to their temporary displacement.
Insurance companies want to limit losses
In a perfect world, a property owner facing a seven-month displacement based on the proposed construction timeline could obtain funds to pay for housing up front, which may give them more leverage when seeking a short-term lease and more stability while living somewhere other than their primary residence.
They should be able to rely on insurance to cover related additional living expenses (ALEs), such as animal boarding, take-out food and other costs directly associated with living in a temporary housing arrangement. Unfortunately, insurers might only approve housing costs in one-month or three-month increments, forcing policyholders to resubmit requests frequently until the completion of the work on their home.
There may also be disputes about what ALEs are eligible for payment and how much the insurance company can provide for those expenses, as well as how long the insurance company covers alternative living arrangements.
Working with a homeowners insurance attorney can help people handle negotiations and optimize the funds they receive when living elsewhere temporarily due to necessary home repair work inspired by turbulent circumstances.